Bye Pass Sidhra, Jammu, India 180001

GSTIN: 29AAACT6167G1Z3
T +91 (0)191 2662254 F +91 (0)191 2662254 E [email protected] W www.jkbank.net

Ref No.: JKB/Sidhra/Adv/2023-24/610

Dated: 19-9-2023

M/s Shoe Choice Prop Ravi kumar

Ro Patta Chungi Bohri
Jammu

Subject: Sanction for renewal of cash credit

We are pleased to inform you that renewal facility for Rs 7.00 lacs is sanctioned in favour of
M/s. Shoe Choice Prop Ravi Kumar S/o Sham Lal R/o Patta Chungi Bohri Jammu for a period of
one year subject to renewal after review against the below mentioned securities and terms
and conditions

a. Approval for: NA

Terms and Conditions

Borrower M/s Shoe Choice

Promoter (s) Mr. RAVI KUMAR

Facility-I Cash Credit

Amount Rs 7.00 lacs

Purpose Renewal of cash credit

Rate of Interest CRLLR+3.00% i.e 12.45%

Reset of interest rate NA

Processing Fees @0.25% on enhanced amount and @0.10% for renewed amount.

Renewal/ Review 12 months

Margin 25% on stocks & book debts

Drawing Power Rs 7.00 lacs

Submission of stock Quarterly

statement

Security Primary Hypothecation of stocks of all

kinds in trade and assignment of
book-debts.

Collateral CGTMSE cover

Time period for NA
security creation and
perfection
Bye Pass Sidhra, Jammu, India 180001
GSTIN: 29AAACT6167G1Z3
T +91 (0)191 2662254 F +91 (0)191 2662254 E [email protected] W www.jkbank.net

Validity of sanction 45 days

Prepayment charges NA

Penal/ Default 2%
Interest

Documentation In accordance with the law deptt

Insurance Upfront, against all risks.

Internal Rating

External Rating NA

 Have executed loan and security documents in a form and

manner as advised by Legal counsel of the bank
 Have perfected securities under the facility in favour of the
Bank, except for the cases where time period has been
given for perfection of security.
 All the credit facilities being availed by the borrower/
directors/ partners/ guarantors are standard assets
 To ensure that borrower is not in caution / defaulter list of
RBI/ CIBIL/ ECGC.
 The party to undertake not to create any subsequent charge on
primary security during the currency of loan.
 The party to execute an irrevocable power of attorney
Pre-disbursement authorizing the Bank to sell the primary security in case of its
Conditions (in case of failure to adjust the account on demand.
fresh/ enhancement)  The party to undertake to deal exclusively with our Bank.
 The Party to undertake that sales projections shall be achieved
failing which Bank shall be at liberty to recall or reduce the
sanctioned limits.
 The party to ensure that the firm has obtained all applicable
statutory/approvals/permissions/licenses required for running
the unit and are still in force.
 The party to ensure that all existing facilities if any, availed by
the borrower /sister concern/guarantors are running
satisfactory and are standard in nature.
 The party to ensure that the firm has obtained all applicable
statutory/approvals/permissions/licenses required for running
the unit and are still in force.

Representations/ Following representations/warranties to be provided by the

Warranties/ obligors:
undertakings

A. It is in compliance with all applicable laws and has obtained

all clearances and authorizations.
Bye Pass Sidhra, Jammu, India 180001
GSTIN: 29AAACT6167G1Z3
T +91 (0)191 2662254 F +91 (0)191 2662254 E [email protected] W www.jkbank.net

B. All information provided to the Bank is true and correct.

C. The financial statements delivered to the Bank are its most
recent and prepared in accordance with applicable laws and
generally acceptable accounting principle
D. No action has been taken (voluntary or involuntary) for its
liquidation / insolvency,
E. It has good and marketable title to its assets over which
Security is to be created.
F. It is not a wilful defaulter with any bank/financial
institution.
G. All its arrangements with group companies if any, are on an
arm’s length basis.
H. Except to the extent disclosed, no director of the Bank is a
director, manager, managing agent, employee or guarantor
of the Borrower, or of a subsidiary or holding company of the
Borrower or holds substantial interest, in the Borrower or a
subsidiary or the holding company of the Borrower. No
directors / relative of any other banks or financial
institutions holds substantial interest or is interested as
director or as a guarantor of the Borrower.

Borrower/Obligor shall:

A. comply with all applicable laws and obtain/maintain all

authorizations;
B. maintain proper books of accounts to accurately reflect its
financial condition;
C. pay all applicable taxes and stamp duty;
D. permit the Bank/its employees/consultants to inspect its
assets and premises
Other Conditions Borrower/Obligor shall not, without the prior written approval of
the Bank:

A. Dispose of its fixed assets related to the unit/ establishment

charged to the bank to secure this Facility.
B. Create any Security Interest by way of ceding charge on fixed
assets already charged to the Bank.
C. Incur further indebtedness from any other Bank/ FI.
D. Issue any fresh guarantee in favor of any company, bank or
entity.
E. Any fresh investment by the Borrower in any subsidiary, group
or associate company or entity.
F. Formulate any scheme of merger, amalgamation or
reconstruction.
G. Change in its management control/ shareholding pattern.
H. Allowing any person / entity right to use any of its assets under
charge of the bank.
I. Before undertaking any major new project, implement scheme
of any major expansion.
J. Repay any money brought in by the promoters.
K. Declare any dividend on Borrower’s share capital without
Bye Pass Sidhra, Jammu, India 180001
GSTIN: 29AAACT6167G1Z3
T +91 (0)191 2662254 F +91 (0)191 2662254 E [email protected] W www.jkbank.net

approval of the Bank, if the Borrower fails to meet its

obligations to pay interest, instalments and other monies due
to the Bank under the Facility.

Disclosure: The Bank shall be entitled to disclose all information

relating to the Borrower (including defaults committed) to Credit
Information Companies (“CIC”) authorised by RBI and/or any other
person pursuant to the Insolvency and Bankruptcy Code, 2016;
and/or to any other statutory or regulatory or law enforcement
authority (including Court and/or Tribunals), and/or with other
banks / financial institutions involved in the financing arrangement.
Any CIC and any other agency so authorized may use, process the
said information and data disclosed by the Lender in the manner as
deemed fit by them to other banks / financial institutions / credit
providers and the Borrower shall not hold the Bank liable in any
manner for use of such information.

Willful Defaulter: No one on the Borrower’s board/ partner/

proprietor/ trustee has been identified as a wilful defaulter by RBI
or CIBIL or whose name appears in any caution/defaulter list of any
nature published by the RBI or any similar regulatory or
governmental authority. The Borrower shall not induct a person
identified as wilful defaulter as its’ director/senior officer/ partner
/ member / trustee and shall take expeditious and effective steps
for removal of such person if so inducted.

Insurance: The Borrower shall ensure that the interests of the

Lender is duly endorsed on such insurance policies and all renewals
thereof. The Borrower shall arrange for the appropriate Insurance
of its assets

Financial Information: The Borrower shall provide the Bank with

copy/ ies of its quarterly unaudited profit and loss account and
balance sheet of the Borrower within 90 (ninety) days from the end
of each quarter as published. The Borrower shall provide the Bank
with copy/ ies of its annual audited profit and loss account and
balance sheet and annual report of the Borrower within 180 days
(90 days in case of listed companies) from the end of each financial
year or immediately on being published /signed by the auditors.

 the Borrower hereby agrees and confirms that the Bank

reserves the absolute right to cancel the undrawn limits (either
fully or partially) unconditionally without prior notice in the event
of:
 the limits/part of the limits are not utilized by the Borrower
at the end of the Availability Period and/or;
 Any non-compliance of the terms and conditions of sanction.

Information:
Bye Pass Sidhra, Jammu, India 180001
GSTIN: 29AAACT6167G1Z3
T +91 (0)191 2662254 F +91 (0)191 2662254 E [email protected] W www.jkbank.net

 The Borrower shall also provide such other information as

reasonably requested by the Bank from time to time.
LCU/Branch to ensure compliance of RBI guidelines
regarding sharing of information among Bankers about
status of borrowers enjoying credit facilities from more
than one Bank.

 The borrower shall agree that in the case of a default in

repayment of financial assistance or payment of interest
thereon, on the stipulated due date/ or demand, the
Jammu & Kashmir Bank and/or the Reserve Bank of India
(RBI)/Credit Information bureau of India Ltd. (CIBIL) will
have an unqualified right to disclose the names of the
BORROWER and its directors as defaulters in such manner
and through such medium as the bank and RBI/ CIBIL in
their absolute discretion may think fit.
 Borrower agrees and give consent the Bank shall from time
to time be entitled to recover the charges/Fees that it has
to pay to National E-Governance Services Ltd (NeSL) or any
other information Utility(IU) in connection with the
submission of Financial or any other information of the
Borrower and his/her/its loan account(s) to the NeSL or any
IU as the case may be, in terms of the Insolvency and
Bankruptcy Code, 2016 or any other law for the time being
in force.”
 The borrower should convey in writing acceptance of the
terms of conditions of sanction at the time of execution of
security documents.
Other account specific
Terms & Conditions

V details

Customer Awareness (SMA Reporting)

In case of non Basis for classification

SMA Sub-
revolving facilities Principal or interest payment or any other
categories
(Term Loans) amount wholly or partially overdue for

SMA-0 1-30 days

SMA-1 31-60 days

SMA-2 61-90 days

In case on revolving Basis for classification

facilities viz., cash SMA Sub- Outstanding balance remains continuously in
credit, SOD, Line of categories excess of the sanctioned limit or drawing
Credit etc power, whichever is lower, for a period of

SMA-1 31-60 days

Bye Pass Sidhra, Jammu, India 180001
GSTIN: 29AAACT6167G1Z3
T +91 (0)191 2662254 F +91 (0)191 2662254 E [email protected] W www.jkbank.net

SMA-2 61-90 days

Above all Branch to ensure proper end use of funds

All Terms and Conditions Read and Accepted.

M/s Shoe Choice

Prop Ravi Kumar
Ro Patta Chungi Bohri Jammu
(Borrower)

Yours faithfully,
Branch Head
JKB Sidhra